|
PureBytes Links
Trading Reference Links
|
> Before you can (even) decide to trade a trend following system, you have
to know the trend, right.
> How do you determine that before choosing any stocks for your portfolio?
In all the books I have read about trading, I don't think I have ever read a
truer statement than this from MB:
"maybe markets appear to have a directional bias. but really they do not,
all markets are in a transition to surprising the person who thinks he has
the direction
figured out."
Most books will have you believe that the markets will be in 1 of 2 modes -
trending or consolidating, and that you need an indicator to figure out
which it is so you can adjust your strategies accordingly. Well what I
think is that markets have a 3rd mode that I like to call "pain in the ass
mode", and they are nearly always in it. Have you ever known one of those
irritating people who always disagrees with everyone just for the sake of
being difficult? That's how I see the markets behaving the vast majority of
the time. I think it's people who can find some way of navigating
pain-in-the-ass mode that are able to succeed as traders.
Just my .02.
David
---
|